TZA Swing Trade Idea
The following chart & notes outline the entry criterion, price targets, suggested stop & beta-adjusted position size for a swing trade in TZA, 3x Bearish Small Cap ETF.
Using Index Short ETFs In Your Trading & Investing
This video discusses the benefits of incorporating the use of inverse or "short" ETFs that track the major US stock indexes into your trading & investing. The pros & cons of using leveraged vs. non-leveraged ETFs are also covered along with the most liquid inverse ETFs commonly used as either a pure-play short on the stock market or as a hedge to an existing portfolio of long positions. Additional information on leveraged as well as non-leveraged ETFs can be found on the FAQ page under the ETF Related Questions subsection. playback speed can be increased in the settings to reduce video [...]
US Index Update, Potential Wedge Overthrows
Both the SPY & QQQ have broken above the top of the previously highlighted 15-minute bearish rising wedge patterns with IWM current trading at the top of its 15-minute wedge pattern. All three of these index tracking ETFs remain on short-term buy signals (15-minute MACD & 28/68 ema pair) for now and although these upside breaks certainly dampen the near-term bearish outlook for the US equity markets, the bearish intermediate & longer-term technical outlook on the daily & weekly time frames remains unscathed at this time. Over the years, I've often discussed & highlighted one of the most powerful technical developments [...]
Shorting Small Caps, Long TWM/TZA
TWM (2x short Russell 2000 Index) & TZA (3x short small caps) will be added as Active Short Trades here at the bottom of this descending triangle pattern on TWM. TWM is my preferred vehicle for the second price target, T2 at 38.42 while the extra leverage on TZA would be most appropriate for those only targeting T1 (36.43 on TWM). Suggested stop on a move below 34.50. In the video coverage of the US markets posted earlier today, I highlighted some potentially bearish developments on both the Russell 2000 ($RUT) as well as the S&P 600 ($SML) [...]
Follow-up Comments, IWM/TZA stopped out
I got off to a late start today and once I booted up and noticed the markets were about to gap up I started to put together the charts and my thoughts on the previous post as I wanted to share my thoughts in advance of the two reports issues at 10:00 was only barely able to get that post off before then. No surprise, both Factory Orders and the ISM Non-Manufacturing Index came in below expectations with both at the low end of the range. None of that seems to matter lately as the market has a very strong bid [...]
IWM 60 minute
This chart is the same 120 minute IWM chart that I've been posting with the descending broadening top pattern only zoomed into a 60 minute time frame for clarity. I measured the retracements on the counter-trend mini-rallies following the two impulsive sell offs that ensued immediately following prices kissing the top of the pattern. It is very common to see counter-trend moves within a larger trend retrace between 38.2% - 61.8% of the previous move. In fact, we often see these counter-trend retracements actually turn down right at or very close to either the 38.2%, 50% or the 61.8% retracement levels [...]
Market Update
Not much to update other than the fact that all the major US indices did sell off today, which was (is) pretty much the 11th hour as I had stated one week ago today: By my interpretation, the recent technical breakdowns and/or sell signals in these key stocks and indices are still intact or close to triggering (as in the case of the $SPX). However, any significant additional upside in the markets from current levels will begin to rapidly negate these sell signals/breakdowns and therefore, the market needs to reverse very soon, lest the bearish scenario will begin to rapidly diminish. [...]